Government unveils sweeping coffee sector reforms targeting Ksh100B earnings and tripled production by 2028

The government has rolled out far-reaching reforms in Kenya’s coffee sector aimed at boosting farmer earnings, increasing transparency, and restoring the country’s position as a global coffee powerhouse.

Speaking during the opening of the East African Coffee Market & Conference in Nairobi, New Kenya Planters Cooperative Union (New KPCU) Chairman Daniel Chemno said the reforms are designed to ensure farmers receive timely payments and fair returns for their produce.

Chemno revealed that over 590,000 farmers have already received Ksh9.5 billion under the Coffee Cherry Advance Revolving Fund, allowing instant payment of Ksh40 per kilo upon cherry delivery.

“The government has also provided Ksh6.8 billion in debt relief, affordable inputs, and a Direct Settlement System to ensure farmers are paid promptly and fairly,” said Chemno. “This is about restoring dignity and confidence among coffee producers.”

He added that the reforms also promote direct sales by empowering cooperatives and estates to bypass the traditional auction system and access global buyers directly, ensuring farmers earn more from their coffee.

Under the new plan, coffee production is projected to rise from 50,000 metric tonnes to 151,000 by 2028, with national coffee earnings expected to grow from Ksh35 billion to Ksh100 billion.

“We are looking to increase yields from two kilos per tree to six kilos and improve payments from Ksh86 per kilo to Ksh130,” Chemno said, adding that the government plans to revive both traditional and emerging coffee-growing regions.

Presidential advisor on crops and value chains, Henry Kinyua, said consistent implementation of the Coffee General Regulations 2019 and the Capital Markets Authority Coffee Exchange Regulations 2020 will help farmers benefit more directly from their crops.

He urged the government to fast-track the mediation of the Coffee Bill currently before Parliament, saying it would establish a Coffee Board to strengthen governance and research in the sector.

Commodities Fund CEO Nancy Cheruiyot said credit access for smallholder farmers remains a key focus, with loans currently capped at 7.5 percent. She noted that Ksh5 billion has been allocated over the next three years to support value chain financing.

Kenya, known globally for its high-quality Arabica coffee, exports most of its produce to international markets, but local consumption is gradually rising as reforms reshape the sector’s future.